Business, 08.12.2019 22:31 jansielys01013
Carla vista diesel owns the fredonia barber shop. he employs 5 barbers and pays each a base rate of $1,480 per month. one of the barbers serves as the manager and receives an extra $510 per month. in addition to the base rate, each barber also receives a commission of $5.50 per haircut.
other costs are as follows.
advertising $220 per month
rent $980 per month
barber supplies $0.36 per haircut
utilities $180 per month plus $0.24 per haircut
magazines $20 per month
carla vista currently charges $11.00 per haircut.
a.) determine the variable costs per haircut and the total monthly fixed costs. (round variable costs to 2 decimal places, e. g. 2.25.)
total variable cost per haircut $
total fixed $
b.) compute the break-even point in units and dollars.
break-even point haircuts
break-even sales $
c.) determine net income, assuming 2,420 haircuts are given in a month.
net income / (loss) $
Answers: 3
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Carla vista diesel owns the fredonia barber shop. he employs 5 barbers and pays each a base rate of...
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